Pharmaceutical News
New strategies to be adopted for NHI management following emergence of new economic models in healthcare sector
2020/08/14

By Lee Po-chang

 

Recent discussions about the National Health Insurance (NHI), among stakeholders have been focused on the system’s balance sheet. As National Health Insurance Administration (NHIA) Director General, it is my personal responsibility to ensure the responsible allocation of NHI resources. Topics that have been raised include “the system’s strained finances leading to NT$7.5 billion in fiscal shortfall in the first quarter alone,” “proposed plans to require copayments for NHI-reimbursed diagnostic testing,” “raising reimbursement requirements to address challenges of tumbling diagnostic fees for physicians,” “two new hepatitis C drugs alone accounting for NT$6.8 billion in last year’s total NHI drug expenditure of NT$208.3 billion.”

 

As the artificial intelligence (AI) revolution takes hold across the globe, the NHI, which has established a medical data base over the past 25 years, is in an ideal position to capitalize on trending AI technologies. Currently, there are 17 research teams that have commenced work on AI, including 10 from the medical sector and seven from academia. Among them, there are 11 industry-academia collaborative projects, as new economic models in the healthcare sector emerge.

 

Cancer is an area where the government has poured in a considerable amount of medical resources. NHI data show that as of 2019, there are around 757,000 cancer patients who required NT$110.8 billion in treatment expenditure, representing one-seventh of the annual global budget, with oncology drugs accounting for NT$27.9 billion, or 15 percent of total drug expenditure. Looking ahead, the NHIA is planning to build thematic data bases specific to the disease diagnostic needs of the Taiwan population, as well as developing health prediction capabilities and AI-powered modules that will be adopted for use in clinical and medical settings and help boost progress towards smart and precision healthcare.

 

“Remote healthcare” is a vital aspect of the government’s efforts at ensuring the health of residents in Taiwan’s outlying islands and remote areas. With Taiwan’s strong foundation in information communication, these networks and technologies can create new models for remote healthcare. In addition, “homecare” has also been identified among promising new trends in medicine. We encourage medical professionals to participate in the homecare movement and provide this vital service. The NHIA also believes that as more emerging medical technologies mature, new ways to manage the NHI must be established.

 

With advancements in medical technologies and equipment, treatments have become more complex. The manpower and resources required for treatments have also subsequently increased. Therefore, as the first step toward establishing a new management model, the NHIA will review outdated payment standards and systems.

 

Medical AI applications, precision healthcare, new drugs, medical devices and therapeutics are poised to usher in new economic models and these developments will both directly and indirectly affect how the NHI will be managed as well as sparking new strategies. We are committed to ensuring the sustainability of the NHI and hope that our partners in the medical community will continue to leverage their professional knowledge in furthering health awareness among the public and help conserve the NHI’s finite resources.

 

(The author serves as Director General of the National Health Insurance Administration)

 

[2020-08-09 / CNA]